Michael Comiskey (Fine Gael) | Oireachtas source

I move:

That Seanad Éireann:- recognises the importance of an effective and well-resourced Common Agricultural Policy in creating sustainable development of agriculture across Europe supporting the ambitions and targets of the Irish agricultural sector;
- notes that the amount of EU funding attributable to CAP will depend on the outcome of parallel negotiations for the new multi-annual financial framework (MFF) for the EU budget from 2014 onwards;
- recognises the need for the current reform discussions to respond to future challenges for agriculture and rural areas, increasingly from external sources, so as to maintain viable food production, sustainable management of natural resources and respond to climate changes;
- notes reform proposals in respect of the distribution of funds among and within member states and recognises the need to retain levels of funding and provide maximum flexibility for member states in relation to payment models and transitional arrangements where there are to be changes to the distribution of funds;
- notes the introduction of a greening component as an additional environmental measure beyond cross-compliance, supports the encouragement of sustainable agriculture but identifies the need to limit the bureaucratic requirements of the new component;
- notes the proposals for increasing criteria applicable to rural development and recognises the need for criteria to be easily assessable with minimal administrative burden;
- welcomes the proposal to include additional supports to young trained farmers, acutely aware that future survival of the agri-sector is dependent upon such young farmers; and
- supports the Minister for Agriculture, Food and the Marine in continued strong negotiations on CAP reform in order to maintain Ireland?s direct payments and rural development at current levels as a means of best achieving Food Harvest 2020 targets.

I welcome the Minister for Agriculture, Food and the Marine, Deputy Coveney, and thank him for attending to take part in our debate on the Common Agricultural Policy. In 2012 the European Union is marking the 50th year of the CAP. The historical influence of Ireland's membership of the EU, the subsequent participation in the CAP and its impact on the farming sector cannot be exaggerated. Since its inception, farmers have been the main beneficiaries of direct EU funds, which amount to 40% of the total EU budget.

The CAP was introduced as a means of securing food production in Europe while alleviating the pressures on the farming community and farm incomes. The direct payments scheme allowed many to remain on the land at a time when emigration and urbanisation were becoming the norm. However, just as reform was necessary in 1992 as a consequence of Internal Market disintegration and growing food mountains, the impact on the external economic environment and social and technological pressures necessitate reform today.

I wish to address some of the areas of reform outlined by the Minister, particularly the proposed changes to direct payments and the introduction of the greening element. The Commission proposes that 30% of future direct payments be used as greening measures. The farming sector is acutely aware of the effect of climate change and is more vulnerable to it than most sectors. It directly affects soil quality and consequently has an impact on output and livelihoods. As the pressure to respond to increased demand for food continues, we cannot allow our basic input resources to degrade to a state from which they cannot recover. The successful integration of such policy may contribute to improved soil conservation and secure food production. In addition, it would address the wider societal concerns in respect of food security and food safety. Those concerns are best addressed under one common policy with a pooled use of resources. However, in addressing environmental challenge, the burden of compliance must not be so onerous as to constrain output.

I support the Minister in seeking manageable proportions of direct payment to be attributed to the greening element and support him in his call for streamlined integration of the policy into cross-compliance requirements under a single scheme. Any further administrative burdens on farmers should be limited.

I wish to consider the proposed changes to the structures and methods of distribution of the direct payments, which I have no doubt formed a significant part of the reform discussions. I am aware that the funds attributed to the CAP form part of the multi-annual financial framework discussions, but as agriculture is our largest indigenous industry it is vital that this country maintain a strong negotiating position to ensure strong overall funding for the CAP.

This country has benefited by more than ¤44 million in direct payments under the CAP, and direct payments form the basic annual income for many farmers. The current funding levels to this country should be maintained. Any proposal to reform the levels and method of distribution of payments are a key concern. The Commission has proposed changes to the operation of direct payments by which entitlements would be allocated at a flat national or regional rate. However, such a system would fail to take into account the unique element of national farming systems, which should form the overarching basis on which the payment is made. It is important to ensure that any changes to direct payments be accompanied by a transitional period and that maximum flexibility be given to member states in determining a payment system that is best suited to their national farming industry.

In respect of pillar 2 reforms, I am disappointed by the lack of detail brought forward by the Commission on the distribution of the funds. I agree with the Minister that pillars 1 and 2 should be considered together, as the aims of one complement the other in supporting a sustainable agriculture sector under one common policy. As the Minister and Members of the House are aware, I come from a rural constituency which has directly benefited from pillar 2 as a means of supporting rural life. As two thirds of Irish farmers are classified as rural, that is an important element of the agriculture sector. The supports have alleviated the pressures of urbanisation and migration from the land while increasing land competitiveness and improving the quality of life in rural areas. Rural development plans have been instrumental in creating employment, promoting tourism and maintaining national identity in rural areas. I support the Minister's aim to move away from the objective criteria proposal, which would fail to take into account significant local factors. Simplification must be reflected in any changes to rural development funding. The objective of sustainable management of natural resources and climate action under pillar 1 is an equally important feature of pillar 2 reforms. I welcome the stated intention to retain those objectives.

The restoration, preservation and enhancement of the national ecosystem into the future must be actively promoted. However, any environmental protection measures must not lose sight of the need to protect the social viability of agriculture. Special attention must be given to the revitalisation of rural areas, many of which rely heavily on agriculture for employment. Census 2011 figures show the farming sector has one of the lowest unemployment rates. In supporting rural economies and creating an incentive for farmers to remain in production, the agriculture sector can play a vital role in the Europe 2020 strategy and the Food Harvest 2020 programme.

I welcome the discussion on young farmers. There is little benefit in the promotion of sustainable farming methods without putting in place measures to support those who are expected to adhere to the standards in the future. We had a good meeting this morning with Macra na Feirme, and we have taken on board a number of the views expressed at the meeting.

We are all aware of the importance of agriculture to the economy and the growing significance it can have in leading the economy back to growth. Modern CAP reforms are driven primarily by external factors, as European farmers compete with heavily subsidised producers from emerging markets with less stringent production rules. The reforms will enable European agriculture to better respond to environmental and climate change and sustain it far into the future, in contrast to other markets which may continue to rely on intensive farming methods and will be less able to adapt.

World population growth is outstripping food supply. The UN Food and Agriculture Organization estimates that food now costs 39% more than it did last year. Sustainable farming methods will ensure that the European agriculture sector has the ability to respond to these demands. I again thank the Minister for coming to the House. I understand his schedule is busy as a consequence of the ongoing discussions on the CAP. This country has a unique opportunity to bring its influence to bear on the outcome of the new CAP programme during its EU Presidency, which will start next year. I wish the Minister the best of luck in negotiating the best possible outcome for farmers in the future.